04-22-2007, 05:01 AM
I used to build for home owners and a couple of apartment owners too in LA with out a contractors license, and hire workers and subs. It was legal and no liabilities.
The projects were 'owner builder', and I charged an hourly wage. For the crew I had a liability release form designed by an attorney, which relieved the owner and myself from any blame or responsibly According to California law, were there an accident.
When we'd need a sub contractor, I'd interview every contractor in the book, once I found a suitable person I'd present them to the owner and have them sign contracts, including liability release or subs insurance proves.
For materials, once I made a list, Ifd submit it too all available lumber companies, etc., and owner would pay directly to supplier upon delivery or demand. Owner received any discounts I could acquire with no kickbacks or tack on. This was great for the owners because after Ifd finished a few projects, I began to get special rates from suppliers and or suppliers would really compete to get the sale. 20-30-50k and more, thousands of dollars is a good sale for a lumber company!.
The 1099's were the owners responsibility to file or not.
This was back in the early 1980's. In a very short time I became acquainted with most of the inspectors in Los Angeles, and they had a good amount of respect for me. I never once failed an inspection, not even close. Most especially, the inspectors admired my ability to save owners so much cash.
I am not sure this is possible in L.A. anymore, and here in Hawaii the major drawback is owners not being able to do their own plumbing or electrical. At the time, in L.A., owners were allowed to do these.
The liability release is very important. Your crew members might seem like your best friends while they are building and you are paying them, but if there's a chance they think they'll get an extra buck from suing you, 90 percent will do it.
The keys to making this work were, no contracts between owners and myself, but simple payroll. Problem for most owner builders is finding someone who will get the job done, KNOWS WHAT THEY ARE DOING, can supervise the crew, fire no shows and find able workers, not screw around when your back is turned, and charge you for actual work performed verses sitting on the can. Nobody got paid for sitting on the can on my jobs.
But, not to be bias or pat myself on the back, finding somebody who is honest, reliable, diligent, KNOWS WHAT THEY ARE DOING (need I reiterate?) and works Cheap in comparison to the prevailing contractors rate, ain't no easy task.
Personally, for whatever fallacies i had, plumbing, electrical, or whatever came up, nobody can know it all, and there's always something slightly different, I kept updated code books for reference. Never relied on word of mouth for applying current codes and practices to a job, never skimp on materials as well. No hack jobs is why I never failed an inspection and gained the respect of L.A.'s strict inspectors.
Currently not available for work. Can't handle the 15 hour days, plus. Ha.. Besides, I am in the process of building my own house.
Edited by - Jeffhale on 04/22/2007 11:23:09
The projects were 'owner builder', and I charged an hourly wage. For the crew I had a liability release form designed by an attorney, which relieved the owner and myself from any blame or responsibly According to California law, were there an accident.
When we'd need a sub contractor, I'd interview every contractor in the book, once I found a suitable person I'd present them to the owner and have them sign contracts, including liability release or subs insurance proves.
For materials, once I made a list, Ifd submit it too all available lumber companies, etc., and owner would pay directly to supplier upon delivery or demand. Owner received any discounts I could acquire with no kickbacks or tack on. This was great for the owners because after Ifd finished a few projects, I began to get special rates from suppliers and or suppliers would really compete to get the sale. 20-30-50k and more, thousands of dollars is a good sale for a lumber company!.
The 1099's were the owners responsibility to file or not.
This was back in the early 1980's. In a very short time I became acquainted with most of the inspectors in Los Angeles, and they had a good amount of respect for me. I never once failed an inspection, not even close. Most especially, the inspectors admired my ability to save owners so much cash.
I am not sure this is possible in L.A. anymore, and here in Hawaii the major drawback is owners not being able to do their own plumbing or electrical. At the time, in L.A., owners were allowed to do these.
The liability release is very important. Your crew members might seem like your best friends while they are building and you are paying them, but if there's a chance they think they'll get an extra buck from suing you, 90 percent will do it.
The keys to making this work were, no contracts between owners and myself, but simple payroll. Problem for most owner builders is finding someone who will get the job done, KNOWS WHAT THEY ARE DOING, can supervise the crew, fire no shows and find able workers, not screw around when your back is turned, and charge you for actual work performed verses sitting on the can. Nobody got paid for sitting on the can on my jobs.
But, not to be bias or pat myself on the back, finding somebody who is honest, reliable, diligent, KNOWS WHAT THEY ARE DOING (need I reiterate?) and works Cheap in comparison to the prevailing contractors rate, ain't no easy task.
Personally, for whatever fallacies i had, plumbing, electrical, or whatever came up, nobody can know it all, and there's always something slightly different, I kept updated code books for reference. Never relied on word of mouth for applying current codes and practices to a job, never skimp on materials as well. No hack jobs is why I never failed an inspection and gained the respect of L.A.'s strict inspectors.
Currently not available for work. Can't handle the 15 hour days, plus. Ha.. Besides, I am in the process of building my own house.
Edited by - Jeffhale on 04/22/2007 11:23:09